By CNBC
Mortgage rates dropped sharply Tuesday, as investors in mortgage-backed bonds seemed to buy in ahead of a widely expected rate cut by the Federal Reserve.
The average rate on the 30-year fixed mortgage dropped 12 basis points from Monday to 6.13%, according to Mortgage News Daily. That is the lowest level since late 2022.
“The overall set-up is reminiscent of September 2024 when rates were doing the same thing for the same reasons ahead of Fed meeting with a virtual 100% chance of a rate cut,” said Matthew Graham, chief operating officer of Mortgage News Daily. “Back then, mortgage rates moved paradoxically higher after the Fed rate cut. The same thing could happen this time, but it’s by no means guaranteed.”
